Hardware wallet manufacturer Ledger has paused its key recovery service following backlash from the crypto community. The service, which was announced last week, would have allowed users to store encrypted versions of their seed phrases with three custodians. Although the feature was optional, many in the crypto community were concerned about the security risks involved, such as the possibility of the custodians being hacked or colluding with each other.
A key recovery service is a service that allows users to store encrypted versions of their seed phrases with a third party. This can be useful if a user loses their seed phrase or if it is compromised. However, key recovery services also introduce security risks. If the third party is hacked or if they collude with each other, then users could lose access to their funds.
In a statement, Ledger said that it was pausing the service “to address the concerns that have been raised.” The company said that it would continue to work on the service and would release it “once we are confident that it meets the high standards that our users expect.”
The backlash against Ledger’s key recovery service is a reminder of the importance of security when it comes to cryptocurrency. Hardware wallets like Ledger are designed to be a secure way to store cryptocurrencies, but even they are not immune to attack. It is important for users to understand the risks involved and to take steps to protect their funds.